Basic Net SpA

Earnings Release • Oct 29, 2024

9m 2024 RESULTS CONFERENCE CALL

TURIN, 29TH OCTOBER 2024

02 03

EXECUTIVE SUMMARY NETWORK ACTIVITY

9m 2024

GROUP INTERIM RESULTS 9m 2024

EXECUTIVE SUMMARY

9m Consolidated revenues in line with Y-1, with a better Y-o-Y performance in Q3 thanks to the increase in sales of products as the Group strengthens its direct presence on European markets. Net indebtedness with banks in continuous reduction compared to Q3 2023, with strong cash flow expected in Q4.

TOTAL AGGREGATED SALES

9m aggregated sales amounted to € 846,8 mln (-1,4% YoY) with mixed performances across the Brands. Aggregated sales of sourcing centers (ASSC) were reduced by -4,3% compared to 9m23 as the rationalization of direct purchases continues. ASL went down -0,2% with a turnaround in Q3 standalone (+1,9%).

GROUP CONSOLIDATED REVENUES

Group consolidated revenues amounted to € 296 mln (- 0,4% YoY, +4,0% Q3 24 vs Q3 23): the recovery in direct sales recorded in Q2 has been steady over the Q3 with strong wholesale deliveries and a promising retail activity heading into Q4. Royalties from licensees followed the same dynamics as aggregated sales.

EBITDA

EBITDA stood at € 40,6 mln (€ 44,7 mln in 9m2023) as the gap versus precious year was reduced by a solid result in Q3 (+4,3%). Entry and exit fees from licensees more than offset the reduction in direct royalties, whereas labour costs report the same trend as per H1 due to the strengthening of the retail workforce.

NFP WITH BANKS

Net Financial Position with banks at € 108,6 mln (compared to € 92,6 mln at YE 2023 and € 125,6 at 9m 23). Cash flow of the quarter has been negative consistently with the usual seasonality, as the cash-in of trade AR coming from a strong wholesale activity will improve the YE Net financial position.

TOTAL AGGREGATED SALES (TAS) € 846,8 mln € 296,1 mln

CONSOLIDATED REVENUES

NETWORK ACTIVITY 9m 2024

ASL – GEOGRAPHIC AREA 02

in € million	30.09.24	in %	30.09.23	in %	Var	Var %
Europe	477,0	76,5%	444,6	71,1%	32,5	7,3%
Asia and Oceania	31,1	5,0%	41,3	6,6%	- 10,2	-24,7%
Americas	44,2	7,1%	64,0	10,2%	- 19,8	-30,9%
Middle East and Africa	71,3	11,4%	75,3	12,0%	- 4,0	-5,4%
Total ASL	623,6	100,0%	625,2	100,0%	- 1,5	-0,2%

NETWORK ACTIVITY Q3 MARKETING 02 AT 30/09/24

Kappa | Kombat

Kappa Futur Festival America's cup Briko | Jazz Re Found Kappa | Les Ardentes

AT 30/09/2024 Q3 MARKETING

K-Way and Soeur launch their second fall-winter collab

K-Way X Coral Gardeners capsule collection

Freediving World champion Arnauld Jerald is the new K-Way Brand Ambassador

K-Way brand ambassador Shownu is a guest star at the opening event of a pop-up store in Seoul

11 The first K-Way and Ulla Johnson fallwinter capsule collection arrives in stores

02 NETWORK ACTIVITY AT 30/09/2024 Q3 MARKETING

Superga AU x Camilla Superga X Kelly Rutherford FW

Back to school events in Rome and Naples

Sebago x HTC Los Angeles

Sebago x La Sucre Event in Lyon

Sebago presents the "forte_forte loves Sebago" capsule Sebago is back at the Salone Nautico in Genova

GROUP INTERIM RESULTS 9m 2024

CONSOLIDATED REVENUES

CONSOLIDATED REVENUES

NET FINANCIAL POSITION

in € .000	30.09.24	in %	30.09.23	in %	Var	Var%
Sub-total net money holdings	(66.223)	41,25%	(68.789)	40,9%	2.566	-3,73%
Short-term portion of m/l term loans	(11.340)		(14.681)		3.342
Short-term net financial position	(77.563)	48,31%	(83.470)	49,6%	5.907	29,50%
Long-term portion of m/l term loans	(30.668)		(42.030)		11.362
Financial leasing payables	(320)		(116)		(204)
Sub-total loans and leasing payables	(30.988)	19,30%	(42.146)	25,0%	11.158	-26,48%
Net financial position with banks	(108.550)	67,61%	(125.616)	74,6%	17.066	-13,59%
Right of use debts	(43.920)		(32.990)		(10.929)
Payables for future acquisition of company shares	(8.081)		(9.738)		1.657
Net financial position	(160.552)	100,00%	(168.345)	100,0%	7.793	-4,63%

NET FINANCIAL POSITION WALK

NET FINANCIAL POSITION WALK

GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES

Commercial licensees or licensees	independent business owners, granted licenses to distribute Group brand products in their respective regions
Productive licensees or sourcing centers	third-party entities whose function is to manufacture goods branded with the Group brands for the exclusive sale to Commercial licensees or to Group companies
Total Aggregated Sales (TAS)	the sum of Aggregated Brand Sales (ASL) and Aggregated Sales of Sourcing Centers (ASSC)
Aggregated Brand Sales (ASL)	sales by commercial licensees – that generate royalties for BasicNet Group – and sales by the Group companies
Aggregated Sales of Sourcing Centers (ASSC)	sales by productive licensees – that generate sourcing commissions for BasicNet Group
Consolidated revenues	the sum of royalties, sourcing commissions, sales of products made by BasicNet Group companies and real estate revenues
EBITDA	"operating result" before "amortisation and depreciation"
Net Financial Position	total of current and medium/long-term financial payables, less cash and cash equivalents and other current financial assets
Net Financial Position with banks	Net Financial Position, excluding IFRS 16 and financial liabilities for the acquisition of businesses

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